The Impact of Foreign Corporate Ownership on Downsizing and Labour Cost

D.H. Chai

Working Papers from Centre for Business Research, University of Cambridge

Abstract: This study examines the impact of foreign ownership on the firm's labour cost using a panel data of 496 publicly traded Korean companies during the post Asian financial crisis period of 1998-2003. It shows that foreign ownership is positively related to labour cost but this positive effect is significantly weaker for firms with weak financial performance than those with strong financial performance. These results provide support to the view that foreign investors take both monitoring and disciplinary roles for publicly traded firms.

Keywords: Corporate Governance; Restructuring; Downsizing; Labour Cost; Foreign Ownership. (search for similar items in EconPapers)
JEL-codes: G34 J30 L21 M52 (search for similar items in EconPapers)
Date: 2010-06
Note: PRO-2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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